Dayforce Inc (DAY) AI Stock Analysis

• Market Cap: $11.07B
• Dividend Yield: N/A
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 11.73%
• EPS Growth: -376.77%
• Country: US
• Employees: 9,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.37
• Shares Outstanding: 160,034,960
• 10 Day Avg. Volume: 3,759,686
• 30 Day Avg. Volume: 3,220,818
• PEG Ratio: -9.24
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 6.51
• P/FCF Ratio: 66.84
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.80
• Enterprise Value/Gross Profit: 10.96
• Enterprise Value/Ebitda: 76.12
• 1Y Price Target: $70.00
• Price Target Upside: 1.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.24
• Revenue Forecast (FY): $1.94B

• Rating: 67 Neutral
• Price Target: $75.00 ▲(8.48% Upside)

Dayforce Inc's stock score is driven by strong technical indicators and positive corporate events, particularly the acquisition by Thoma Bravo. However, financial performance and valuation concerns, including negative profitability and a high P/E ratio, weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Market Position

The acquisition by a major investor can enhance Dayforce's competitive edge, providing resources for innovation and market expansion.

Balance Sheet Health

A moderate debt-to-equity ratio suggests a solid capital structure, providing financial stability and flexibility for future growth.

Negative Factors

Profitability Challenges

Negative profitability metrics highlight operational inefficiencies, which could hinder long-term financial performance and growth.

Free Cash Flow Decline

A decline in free cash flow indicates potential cash management issues, affecting the company's ability to invest in growth opportunities.

Pension Settlement Charge

The significant pension settlement charge impacts financial results, potentially affecting cash reserves and future financial planning.

Dayforce Inc Business Overview & Revenue Model

Company Description

Dayforce Inc. (DAY) is a leading provider of human capital management (HCM) solutions, specializing in cloud-based software that integrates various HR functions. The company operates primarily in the technology sector, offering comprehensive services that include workforce management, talent management, payroll, and benefits administration. Dayforce focuses on delivering a unified platform that enhances employee engagement and streamlines HR processes for organizations of all sizes.

How the Company Makes Money

Dayforce generates revenue primarily through a subscription-based model, offering its HCM software to businesses on a recurring basis. This includes annual or monthly fees for access to its cloud-based platform, which covers various HR functions. Key revenue streams include fees from payroll processing, workforce management solutions, and additional services such as analytics and compliance management. The company also benefits from strategic partnerships with other technology firms, enhancing its service offerings and expanding its market reach, which contributes to its overall earnings.

Dayforce Inc Financial Statement Overview

Summary

Dayforce Inc demonstrates strong revenue growth and a stable balance sheet with moderate leverage. However, profitability remains a concern with negative net income and declining free cash flow. The company needs to focus on improving operational efficiency and cash flow management to enhance financial health.

Income Statement

Dayforce Inc has shown consistent revenue growth, with a TTM revenue growth rate of 2.25% and a strong historical trend. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in achieving operational efficiency. Gross profit margin has improved to 52.9% in the TTM, reflecting better cost management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.22 in the TTM, indicating a conservative leverage approach. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Operating cash flow is positive, but the free cash flow has declined by 26% in the TTM, indicating potential cash management issues. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to earnings, but the free cash flow to net income ratio indicates room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.89B	1.76B	1.51B	1.25B	1.02B	842.50M
Gross Profit	1.00B	812.10M	646.50M	473.20M	382.30M	341.30M
EBITDA	144.20M	288.00M	264.60M	54.70M	23.10M	56.90M
Net Income	-149.80M	18.10M	54.80M	-73.40M	-75.40M	-4.00M
Balance Sheet
Total Assets	8.68B	9.12B	9.01B	8.46B	7.17B	6.70B
Cash, Cash Equivalents and Short-Term Investments	627.60M	579.70M	570.30M	431.90M	367.50M	188.20M
Total Debt	1.23B	1.23B	1.24B	1.25B	1.18B	711.90M
Total Liabilities	5.98B	6.57B	6.61B	6.35B	4.94B	4.60B
Stockholders Equity	2.69B	2.55B	2.40B	2.11B	2.23B	2.10B
Cash Flow
Free Cash Flow	165.80M	171.50M	105.10M	38.10M	-14.90M	-90.00M
Operating Cash Flow	274.50M	281.10M	219.50M	132.60M	48.80M	-30.20M
Investing Cash Flow	-306.40M	-471.90M	-202.80M	-342.50M	-711.10M	38.80M
Financing Cash Flow	404.50M	59.60M	242.00M	764.60M	491.90M	565.30M

Dayforce Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAY, the sentiment is Positive. The current price of 69.14 is equal to the 20-day moving average (MA) of 69.14, above the 50-day MA of 68.82, and above the 200-day MA of 62.22, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAY.

Dayforce Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	76 Outperform	$9.31B	19.84	28.56%	0.94%	9.72%	-2.69%
PCTY	71 Outperform	$8.37B	38.06	20.42%	―	13.30%	2.80%
PEGA	69 Neutral	$10.61B	42.44	51.96%	0.16%	17.00%	120.21%
DAY	67 Neutral	$11.07B	-73.51	-5.71%	―	11.73%	-376.77%
SRAD	67 Neutral	$7.26B	65.28	9.79%	―	18.99%	66.43%
ESTC	65 Neutral	$8.26B	-74.52	-12.84%	―	16.98%	-265.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Dayforce Inc Corporate Events

Dayforce Inc Stockholders Approve Acquisition by Thoma Bravo

On November 12, 2025, Dayforce Inc. held a special meeting where stockholders approved the company’s acquisition by Thoma Bravo, a major software-focused investor. This approval marks a significant milestone, allowing Dayforce to accelerate its business and enhance customer impact. The transaction, expected to close in late 2025 or early 2026, will see Dayforce stockholders receive $70 per share in cash. The acquisition is anticipated to strengthen Dayforce’s market position and drive further innovation in the HCM sector.

Dayforce Inc Announces Merger with Dawn Bidco

Dayforce, Inc. announced a merger agreement with Dawn Bidco, LLC, where Dayforce will become a wholly owned subsidiary of Dawn Bidco. The company has received demand letters and complaints from stockholders alleging disclosure deficiencies in the merger proxy statement. To avoid delays and costs, Dayforce is voluntarily providing additional disclosures while denying any wrongdoing.

Dayforce Advances in Merger with Dawn Bidco

Dayforce, Inc. has announced a significant development in its merger process with Dawn Bidco, LLC, where Dayforce will become a wholly owned subsidiary of Dawn Bidco. As of October 20, 2025, the merger has met key regulatory conditions under the Hart-Scott-Rodino Antitrust Improvements Act and the Competition Act in Canada. However, the merger’s completion still awaits further regulatory approvals and customary closing conditions, including shareholder approval.